GAC Vehicle Production in Brazil Targets Late 2026-27

GAC Targets Vehicle Production at Catalao

GAC and HPE Automotores are planning to begin vehicle production at the Catalao plant in Goias, Brazil, between late 2026 and early 2027, according to local media reports on September 29. The planned operation represents GAC’s move toward localized vehicle assembly in the Brazilian market, with production expected to begin using a staged approach. Initial output will consist of pre-series vehicles intended for process validation and employee training before regular production expands. The Brazil operation will use facilities dedicated to GAC, separate from Mitsubishi Motors’ existing production lines at the site.

Production Will Begin With SKD Assembly

GAC is expected to initially use a semi-knocked-down assembly approach, with major components and vehicle bodies arriving from China in pre-assembled form. This initial phase is intended to support manufacturing process validation and workforce training as the operation is established. After approximately 12 months, GAC plans to transition toward piece-by-piece assembly, increasing the level of local assembly activity. The staged manufacturing strategy allows the company to establish production processes before moving to a more comprehensive assembly system. GAC will determine which models are assembled locally, while HPE Automotores will oversee production and logistics activities.

Catalao Plant Has Dedicated GAC Capacity

GAC will have dedicated production facilities at Catalao, separate from the manufacturing lines used by Mitsubishi Motors. The dedicated operation is planned to have annual capacity of 50,000 vehicles, while the entire plant has an annual capacity of 100,000 units. Local reports indicate that approximately 80% of the plant’s production capacity remains available, providing room for additional utilization as operations develop. HPE Automotores, which serves as Mitsubishi Motors’ local partner in Brazil, will manage production and logistics for GAC. The arrangement establishes distinct responsibilities between the two companies while using the existing industrial site.

Electric and Hybrid Models Under Consideration

The potential local production lineup has not yet been officially confirmed, but two types of vehicles are being considered. One candidate is the Aion UT electric hatchback, which would give GAC a locally assembled electric vehicle option. A hybrid model is also being evaluated for production at Catalao. The final decision will depend on GAC’s local production plans, but the consideration of both electric and hybrid vehicles indicates that the planned operation could support multiple powertrain technologies. Until the production lineup is formally announced, the Aion UT and the hybrid model should be regarded as candidates rather than confirmed Brazilian-built vehicles.

Industry Impact & Outlook

GAC’s planned Catalao operation could strengthen its manufacturing presence in Brazil while giving the company a staged path toward higher local assembly content. The separation of GAC’s facilities from Mitsubishi Motors’ production lines and the defined role of HPE Automotores create a dedicated operating structure for the new program. The potential inclusion of electric and hybrid vehicles could also broaden the types of GAC products assembled locally, although the final lineup remains unconfirmed. The transition from SKD assembly to piece-by-piece production after roughly 12 months will be an important next step in determining how the operation develops.

Frequently Asked Questions

When will GAC begin vehicle production in Brazil?
GAC is expected to begin vehicle production in Brazil between late 2026 and early 2027 at the Catalao plant in Goias. Initial production will focus on pre-series units used for process validation and employee training before the operation moves toward regular assembly. The company plans to start with SKD assembly, using major components and bodies supplied in pre-assembled form from China. After approximately 12 months, GAC plans to transition to piece-by-piece assembly. The final locally produced vehicle lineup has not yet been officially confirmed.